THE BANKS WILL HAVE TO PAY

So­cial­ist gov­ern­ment set to defy the courts in or­der to save cus­tomers thou­sands of eu­ros over mort­gage tax

Costa Levante News - - FRONT PAGE -

By Dave Jones THE PUB­LIC out­cry caused by a Supreme Court rul­ing – which re­versed a pre­vi­ous de­ci­sion order­ing banks to pay the sub­stan­tial mort­gage tax rather than their clients – has forced the gov­ern­ment to an­nounce a re­form of the law.

Fi­nan­cial ex­perts stated that the orig­i­nal court de­ci­sion over the ‘im­puesto de ac­tos jurídi­cos doc­u­men­ta­dos’ – which ev­ery cus­tomer who con­tracts a mort­gage in Spain has to pay – could cost banks or re­gional gov­ern­ments bil­lions of eu­ros in back pay­ments. The tax in­flates the price of a prop­erty sale for buy­ers, although the amount varies in each re­gion with clients in Va­len­cia, Mur­cia and An­dalucía pay­ing the most, which is 1.5% of the to­tal price of a mort­gage – the high­est amount in Europe.

Con­tin­ues on p21

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